Cash Flow Statement Forecast - Apple

Overview In this exercise, you will build a three-year Cash Flow Statement forecast for Apple by linking the Income Statement, Balance Sheet, and supporting schedules. You will calculate operating, investing, and financing cash flows, and reconcile the resulting change in cash back to the Balance Sheet to ensure it remains balanced for 2019–2021. This exercise reflects real-world multi-statement financial modeling used in equity research, investment banking, and corporate finance, emphasizing non-cash adjustments and balance sheet linkages. While analysts often prepare 5-year projections in professional practice, this exercise uses JPMorgan growth estimates through 2021, resulting in a 3-year forecast—a common approach for simplified exercises and public company analysis. Learning Goals Construct Cash Flow from Operating Activities (CFO) using net income, non-cash adjustments, and changes in working capital. Forecast Cash Flow from Investing Activities (CFI) by modeling capital expenditures and changes in non-current assets using supporting schedules. Estimate Cash Flow from Financing Activities (CFF) by projecting debt activity, share repurchases, and dividend payments. Calculate the Ending Cash Balance for each forecast year and reconcile it with the Balance Sheet. Ensure the Balance Sheet balances after incorporating the projected cash flows. Key Concepts Operating Cash Flow: Cash generated from core business activities after adjusting for non-cash items and working capital movements. Investing Activities: Cash used for capital expenditures and investments in long-term assets such as property, plant & equipment. Financing Activities: Cash flows related to equity issuance, share repurchases, dividends, and debt financing. EBITDA: A proxy for operating performance that serves as a bridge between the income statement and operating cash flow. Working Capital: Short-term asset and liability movements that explain timing differences between earnings and cash flow. Balance Sheet Identity: The fundamental rule that total assets must equal total liabilities plus equity after all projections.

Practice Cash Flow Statement Forecast - Apple with interactive Excel modeling exercises in our Financial Statement Modeling module.

This hands-on modeling exercise helps you master Cash Flow Statement Forecast - Apple through real-world Excel practice and financial modeling techniques.